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I’m seeing big moves in the forex market today, as risk appetite seems to have taken a hit!

Can USD/JPY still resume its uptrend?

But first, here are the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

WHO monitoring potential variant of concern from South Africa

Tokyo core CPI up from 0.1% to 0.3% as expected

Australian retail sales up by 4.9% vs. 2.2% year-over-year forecast

Asian markets slump as investors weigh new variant implications

German import prices up 3.8% vs. 2.0% forecast

Swiss economy expanded 1.7% in Q3 vs. 1.6% consensus

Eurozone private loans increased by 4.1% vs. 4.0% forecast

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. markets out on Thanksgiving holiday
U.S. Treasury Currency Report due

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: USD/JPY

USD/JPY 4-hour Forex Chart
USD/JPY 1-hour Forex Chart

This pair is cruising above a rising trend line on its 1-hour chart, and it looks like another test of support is underway.

Will dollar bulls step up to defend the trend line? Or are U.S. traders too busy enjoying the Thanksgiving break?

Technical indicators suggest that support is more likely to hold than to break.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside, and the pair already seems to be finding buyers at the 100 SMA dynamic support.

Stochastic is on the move down to suggest that a larger pullback is due, possibly lasting until the 61.8% Fib closer to the trend line at 114.32. Once the oscillator turns higher from the oversold region, buyers could take over.

Since there are no major reports due from the U.S. economy today, market sentiment has been the main driver of price action. Keep in mind that traders are paying close attention to the potential new COVID-19 variant of concern being monitored by the WHO.